Data Center

Malaysia Data Center Market – Investment Analysis and Growth Opportunities

KEY HIGHLIGHTS OF THE REPORT:
• Regal Orion is constructing its Shinsei Malaysia 1 data center facility according to Tier IV standards.
• In 2021, NTT Global Data Centers’ opened the CBJ 5 facility, which is equipped with DCIM solutions such as real-time monitoring of the facility’s power consumption, temperature, and humidity.
• The IoT industry in the region is expected to account for over USD 10 billion by 2025.
• The Malaysian government aims to achieve 50% cloud adoption in cloud data centers in Malaysia by 2024.
• The Malaysian ICT market witnessed spending of around USD 17 billion in 2020, which is expected to grow by around 3% to 5% YoY, with increased digitalization of enterprise business environments.
• Keppel Data Centers have adopted 42U racks and offers flexible rack size in the country.

MALAYSIA DATA CENTER MARKET INSIGHTS
• In 2021, Cloud service provider Microsoft planned to establish the first data center region in Malaysia, followed by AWS, and Google which has plans to establish cloud regions in Malaysia.
• The Kulai Iskandar Data Exchange (KIDEX) has over 700 acres of industrial land allocated for data center development, and access to around 600 MW of power.
• The Malaysia data center market will witness the installation of hybrid storage systems that include high-performance HDD and SSDs.
• 5G networks will boost the region’s digital economy and increase the demand for high bandwidth networking infrastructure.
• In the data center market in Malaysia, mostly 42U racks are used and are expected to dominate throughout the forecast period, along with increased adoption of 45U-47U rack units.
• The market in Malaysia was witnessing several new announcements and launches of new projects across the country in the second half of 2020, including investments from major colocation providers and cloud service providers during the COVID-19 pandemic.
• Malaysia is also planning to develop the next smart city project in Johor, being developed with the Internet of Things (IoT), artificial intelligence, big data, 5G technology, and autonomous vehicles.
• The Malaysian ICT market witnessed spending of around USD 17 billion in 2020, which is expected to grow by around 3%-5% YOY, with increased digitalization of enterprise business environments.